D.R. Horton Inc (NYSE:DHI) reported robust financial performance for the second quarter of 2026, generating $7.6 billion in revenue and achieving a consolidated pretax income of $867 million, resulting in a pretax profit margin of 11.5%. The company's net income stood at $648 million, translating to earnings per diluted share of $2.24, a decrease from $2.58 in the same quarter last year. Despite these challenges, D.R. Horton experienced strong demand, with net sales orders rising 11% year-over-year to 24,992 homes, and a total order value increasing 10% to $9.2 billion. The average closing price for homes was $361,600, reflecting a 3% decline compared to the previous year. The company effectively managed its inventory, reducing unsold completed homes by 35% from the prior year. Over the past 12 months, D.R. Horton generated $3.7 billion in cash from operations and returned $4 billion to shareholders through stock repurchases and dividends. However, rising sales incentives and increased SG&A expenses, now at 9.2% of revenues, pose potential challenges for margins moving forward.